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Title: The business career in its public relations
Author: Albert Shaw
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THE BUSINESS CAREER
Barbara Weinstock Lectures on the Morals of Trade.
This series will contain essays by representative scholars and men of affairs dealing with the various phases of
the moral law in its bearing on business life under the new economic order, first delivered at the University of
California on the Weinstock foundation. The first volume to appear in this series is:
THE BUSINESS CAREER. By Albert Shaw, Ph.D.
Paul Elder and Company San Francisco
THE BUSINESS CAREER IN ITS PUBLIC RELATIONS
BY
ALBERT SHAW, PH.D.
EDITOR OF THE AMERICAN REVIEW OF REVIEWS
It is the positive and aggressive attitude toward life, the ethics of action, rather than the ethics of negation, that
must control the modern business world, and that may make our modern business man the most potent factor
for good in this, his own, industrial period.
PAUL ELDER AND COMPANY PUBLISHERS, SAN FRANCISCO
Copyright, 1904 by PAUL ELDER AND COMPANY San Francisco
The Tomoyé Press

It seemed to me that such a step might set in motion a commercially educational force which would prove
far-reaching in its influence and most helpful in raising business character.
Thoughts such as these prompted the recent establishing of the lectureship on "The Morals of Trade" in
connection with the College of Commerce of the University of California.
Let the hope be expressed that this is but the beginning of a movement which may be taken up by abler and
wealthier men in business and broadened in many ways. A growing literature on "The Morals of Trade,"
representing the best thoughts of our best minds, is likely to live and to do splendid service in elevating
commerce and in raising its standards.
H. WEINSTOCK.
The purpose of this discourse is to set forth some of the social and public aspects of trade and commerce in
our modern life. We have heard much in these recent times concerning the State in its relation to trade,
industry, and the economic concerns of individuals and groups. Rapidly changing conditions, however, make
it fitting that more should be said from the opposite standpoint; that is to say, regarding the responsibilities of
the business community as such toward the State in particular and toward the whole social organism in
general.
Some of the thoughts to which I should like to give expression might perhaps too readily fall into abstract or
philosophical terms. They might, on the other hand, only too readily clothe themselves in cant phrases and
assume the hortatory tone. I shall try to avoid dialectic or theory on the one hand, and preaching on the other. I
take it that what I am to say is addressed chiefly to young men, and that it ought to serve a practical object.
In the universities the spirit of idealism dominates. The academic point of view is not merely an intellectual
one, but it is also ethical and altruistic. In the business world, on the other hand, we are told that no success is
possible except that which is based upon the motive of money-getting by any means, however ruthless. We
are told that the standards of business life are in conflict irreconcilable with true idealistic aims. It is this
situation that I wish to analyze and discuss; for it concerns the student in a very direct way.
Our moralists point out the dangerous prevalence of those low standards of personal life and conduct summed
up in the term "commercialism." We are warned by some of our foremost teachers and ethical leaders against
The business career in its public relations, by 3
commercialism in politics and commercialism in society. So bitterly reprobated indeed is the influence of
commercialism that it might be inferred that commerce itself is at best a necessary evil and a thing to be
apologized for. But if we are to accept this point of view without careful discrimination, we may well be

hopelessly a lost cause. If it be not possible to promote things ideally good through these very forces of
commercial and industrial life, then the outlook is a gloomy one for the social moralist and the political purist.
It is not a defensive position that I propose to take. I should not think it needful at this time even so much as
briefly to reflect any of those timorous and painful arguments pro and con that one finds at times running
through the columns of the press, particularly of the religious weeklies, on such a question as, for example,
whether nowadays a man can at the same time be a true Christian and a successful business man; or whether
the observance of the principles of common honesty is at all compatible with a winning effort to make a
decent living.
I am well aware that the thoughtful and intellectual founder of this lectureship, under which I have been
invited to speak, takes no such narrow view either of morality on the one hand or of the function of business
life on the other. His definition of morality in business would demand something very different from the mere
avoidance of certain obvious transgressions of the accepted rules of conduct, particularly of that
commandment which says: "Thou shalt not steal." Nor, on the other hand, would his definition of the
The business career in its public relations, by 4
functions of business life be in any manner bounded by the notion that business is a pursuit having for its sole
object the getting of the largest possible amount of money.
Those people who are content to apply negative moral standards to the carrying on of business life remind one
of the little boy's familiar definition of salt: "Salt," said he, "is what makes potatoes taste bad when you don't
put any on." According to that sort of definition, morality in business would be defined as that quality which
makes the grocer good and respectable when he resists temptation and does not put sand in the sugar. The
smug maxim that honesty is the best policy, while doubtless true enough as a verdict of human experience
under normal conditions, is not fitted to arouse much enthusiasm as a statement of ultimate ethical aims and
ideals.
If it were admitted that the sole or guiding motive in a business career must needs be the accumulation of
money, I should certainly not think it worth while, in the name of trade morals, to urge young men who are to
enter business life that they play the game according to safe and well-recognized rules. I would not take the
trouble to advise them to study the penal code and to familiarize themselves with the legal definitions of grand
and petit larceny, of embezzlement, or fraud, or arson, in order that they might escape certain hazards that
beset a too narrow kind of devotion to business success. It is true, doubtless, that a business career affords
peculiar opportunities, and is therefore subject to its own characteristic temptations, as respects the purely

the calls of professional duty. The laborer is worthy of his hire; and the professional man is entitled to obtain,
if he can, a competence for himself and his family from the useful and productive service he is rendering to
his fellow men. He may even, through genius or through the great confidence his character and skill inspire,
gain considerable wealth in the practice of his profession. But if he is a true professional man he does not
derive his incentive to effort solely or chiefly from the pecuniary gains that his profession brings him. Nor is
the amount of his income regarded among the fellow members of his profession as the true test or measure of
his success.
Thus the lawyer, in the theory of his profession, bears an important public relation to the dispensing of justice
and to the protection of the innocent and the feeble. He is not a private person, but a part of the system for
supporting the reign of law and of right in the community. Historically, in this country, the lawyer has also
borne a great part in the making and administering of our institutions of government. If, as some of us think,
the ethical code of that profession needs to be somewhat revised in view of present-day conditions, and needs
also to be more sternly applied to some of the members of the profession, it is true, none the less, that there
clearly belongs to this great calling a series of duties of a public nature, some of them imposed by the laws of
the land, and others inherent in the very nature of the occupation itself.
It is true in an even more marked and undeniable fashion that the profession of medicine, by virtue of its
public and social aspects, is distinguished in a marked way from a calling in life in which a man might feel
that what he did was strictly his own business, subject to nobody's scrutiny, or inquiry, or interference. The
physician's public obligation is in part prescribed by the laws of the State which regulate medical practice, and
in very large part by the professional codes which have been evolved by the profession itself for its own
guidance. It is not the amount of his fee that the overworked doctor is thinking about when he risks his own
health in response to night calls, or when he devotes himself to some especially painful or difficult case. Nor
is it a mere consideration of his possible earnings that would deter him from seeking comfort and safety by
taking his family to Europe at a time when an epidemic had broken out in his own neighborhood.
I need not allude to the unselfish devotion to the good of the community that in so high a degree marks the
lives of most of the members of the clerical profession, for this is evident to all observant persons.
On the other hand, it cannot be too clearly perceived that there is nothing in the disinterestedness, and in the
obligation to render public service characterizing professional life that amounts to unnatural self-denial or
painful renunciation, unless in some extreme and individual cases. On the contrary, professional life at its
best offers a great advantage in so far as it permits a man to think first of the work he is doing and the social

itself to the immemorial university devotion to mathematics. And in like manner the man who for practical
purposes becomes a chemist or an electrician would be easily admitted by President Eliot, for example, to the
favored fellowship of the professional classes for the reason, first, of the disciplinary and liberalizing nature of
the studies that underlie his calling, and, in the second place, of the public and social aspects of the functions
he fulfils in the pursuit of his vocation.
The architect, the civil or mechanical or electrical engineer, and the chemist, as well as the professional
teacher, the trained librarian, or the journalist who carries on his work with due sense of its almost unequaled
public duties and responsibilities, all these are now admitted by dicta of our foremost authorities to a place
equal with the law, medicine, and the ministry in the list of the professions; that is to say, in the group of
callings which, under my definition, are distinguished especially by their public character. And in this group,
of course, should be included politicians, legislators, and public administrators in so far as they serve the
public interests reputably and in a professional spirit. Nor should we forget such special classes of public
servants as the officers of the army and navy; while nobody will deny public character and professional rank
to men of letters, artists, musicians and actors.
In all these callings it is demanded not merely that men shall be subject to the private rules of conduct, that
they must not cheat, or lie, or steal, or bear false witness, or be bad neighbors or undesirable citizens, but in
addition and in the most important sense that they shall be subject to positive ethical standards that relate to
the welfare of the whole community, and that require of them the exercise of a true public spirit.
The man of public spirit is he who is able at a given moment, under certain conditions, to set the public
welfare before his own. Furthermore, he is a man who is trained and habituated to that point of view, so that
he is not aware of any pangs of martyrdom or even of any exercise of self-denial when he is concerning
himself about the public good even to his own momentary inconvenience or disadvantage. Public spirit is that
state or habit of mind which leads a man to care greatly for the general welfare. It is this ethical quality that to
my mind should be the great aim and object of training.
On its best side, what we term the professional spirit is, then, very closely related to this commendable quality
in men of a right intellectual and moral development that we call public spirit. The chief difference lies in this:
that whereas all professional men may be public-spirited in a general sense, each professional man should, in
addition, manifest a special and technical sort of public spirit that pertains to the nature of his calling. The
lawyer should have a particularly keen regard for the equitable administration of justice. The doctor should
truly care for the physical wholesomeness and well-being of the community. The clergyman should be alive to

inventions, notably that of steam power, which broke up the old household and village industries, gave us the
modern factory system, and along with the development of railroads gave us the modern industrial city. This
new and revolutionizing system of industry and business forced its way into a world of poverty, of disease, of
depraved public life, of low morals in the main pervading the community, a world for the most part of class
distinctions in which the lot even of the privileged few was not a very noble or enviable one, while the state of
the vast majority was little better than that of serfs.
Many writers have sought to throw a charm and a glamour over that old condition of economic life and
society that followed the break-up of feudalism and that preceded the creation of our new political and
industrial institutions. But with some mitigations it was for most people a period, as I have said, of squalor,
disease, and degradation. The fundamental trouble could be summed up in the one word, poverty. The mission
of the new industrial system, for the most part unconscious and unrecognized, was to transform the world by
abolishing the reign of poverty. Doubtless it would be desirable if the improvement of conditions, material
and spiritual, could make progress with exactly even pace on some perfectly symmetrical plan. But history
shows us that the forward social movement has proceeded first in one aspect, then in another, on lines so
tangential, often so zigzag, that it is difficult until one gets distance enough for perspective, to see that any
true progress has been made at all.
Thus, the modern industrial system, which found the conditions of poverty, disease, and hardship prevalent,
seemed for quite a long time, in its rude breaking up of old relations and its ruthless adherence to certain
newly proclaimed principles, to have brought matters from bad to worse. The squalor and poverty of the
village of hand-loom weavers seemed only intensified in the new industrial towns to which the weavers
flocked from their deserted hamlets. Manufacturers were doing business under the fiercest and most
unregulated competition. Economists were demonstrating their "law of supply and demand" and their "iron
The business career in its public relations, by 8
law of wages" as capable in themselves of regulating all the conditions and relations of business life.
Epidemics raged and depravity prevailed in the new factory centers.
But things were not, in reality, going from bad to worse. The beginnings of a better order had to be based
upon two things: first and foremost, the sheer creation of capital; second, the discipline and training of
workers. In the first phases, the new modern business period had to be a period of production. There had got
to be developed the instrumentalities for the creation of wealth. Until the industrial system had raised up its
class of efficient workers and had created its great mass of capital for productive purposes, there could be no

All this is a familiar story, although the depth of its significance is beyond the compass of any living human
intelligence. It is easy to say in a glib sentence that the amount of wealth produced every few years nowadays
is equal to all the accumulated wealth of all the centuries down to the early part of the nineteenth; but the
social meaning of so great a change baffles all attempt at full comprehension.
The competitive system, which had been essential to the launching of this modern period of production, and
which had given to it so much of its irresistible momentum, at length brought the economic organization to a
point of development where, in some fields of production, it was no longer a benefit. The accumulation of
capital had become so large, and with new inventions the possible output had become so abundant, that it
The business career in its public relations, by 9
was well nigh impossible to trust to the blind working of demand and supply to regulate things in a beneficial
way. It began to dawn on men's minds that a successful period of competitive economic life might lead to a
period largely dominated by non-competitive and coöperative principles.
The superior possibilities of this newest régime, along with its many difficulties and perplexities, began to
captivate the minds, not merely of theoretical students and onlookers, but, even more, of great masters of
industry and productive capital. It began to be seen that in place of blind and fierce competition as a regulator
of prices and as an equalizer of supply and demand, there might come to be gradually substituted some more
consciously scientific methods of business administration and of the adjustment of production to the needs of
the market.
Furthermore, with the development of business on the great scale, capital had become relatively abundant and
cheap, while, on the other hand, labor was becoming relatively expensive and exacting. It was evident that the
modern system of industry had passed through its earlier period to one of comparative maturity; and that the
problem of wealth production was no longer so exclusively the pressing one, but that the problems of
distribution were demanding more attention.
How to organize business life on a basis at once stable and efficient; how to see that capital was assured of a
normal even though a declining percentage of dividends; while labor should be rewarded according to its
capacity and desert, were problems which took on public rather than private aspects. And when the business
world began to face these problems with the consciousness that they were to be met, it had virtually passed
over from the lower plane of moral and social responsibility to the higher plane where what the directing
minds do or decide is not measured solely by immediate results in money-getting, but also by the test of larger
social and public utilities.

ask for what they want and no more, and then be prepared to explain satisfactorily what advantage will accrue
to the public if they are given their desires, for they are permitted to exist not that they may make money
solely, but that they may effectively serve those from whom they derive their power. Publicity should rule
now. Publicity, and not secrecy, will win hereafter, and laws will be construed by their intent and not killed by
their letter; otherwise public utilities will be owned and operated by the public which created them, even
though the service be less efficient and the result less satisfactory from a financial standpoint."
Mr. Mellen's state of mind is that which ought to prevail among all the managers of corporations which enjoy
public franchises and perform functions fundamental to the welfare of the community. There will at times be
prejudice and passion on the part of the public, and unfair demands will be made. We shall not see the
attainment of ideal conditions in the management or the public relations of any great business corporations in
our day. But the time has come when any intelligent and capable young man who chooses to enter the service
of a railroad or of some other great corporation may rightly feel that he becomes part of a system whose
operation is vital to the public welfare. He may further feel that there is room in such a calling for all his
intelligence and for the exercise and growth of all the best sentiments of his moral nature.
In the vast mechanism of modern business the constructive imagination may find its full play; and the desire
to be of service to one's fellow men in a spirit reasonably disinterested may find opportunity to satisfy itself
every day. Under these circumstances there is no reason why railway administration should not take on the
same ethical standards as belong rightly to governmental administration, to educational administration, or to
the best professional life.
The same thing is clearly true when one considers nowadays the delicate and important functions of the world
of banking and finance. The old-fashioned money-changer and the usurer of earlier periods were regarded as
the very antithesis of men engaged in honorable mercantile life, and especially of those who possess a social
spirit and the desire to be useful members of the community. But in these days the banks are not merely
private money-making institutions, but have public functions that admittedly affect the whole social organism,
from the government itself down to the humblest laborer. They must concern themselves about the soundness
and the sufficiency of the monetary circulation; they must protect the credit and foster the welfare of honest
merchants and manufacturers; they must coöperate in critical times to help one another, and thus to sustain the
public and private credit and avert commercial disaster; they must at all hazards protect the savings of the
poor. Thus the banks, like the railroads and many other corporate enterprises, are quasi-public affairs, in the
conduct of which the public obligation grows ever clearer and stronger.

followed by the good schoolhouse and the good teacher.
It is instructive to note the transformation that is thus taking place in one county after another of the Carolinas,
or Georgia, or others of the Southern States, because the conditions make it possible to witness within a single
decade the triumph of those business forces which, while they have even more truly and completely
transformed the prosperous parts of America and Europe, have operated more gradually through longer
periods, and therefore in a less easily perceived and dramatic fashion.
Our modern ideals have required, not the refinement and the culture of the select few, but the uplifting and
progress of the multitude. This could only be possible through a general development of wealth, so vast in
comparison with what had previously existed as to constitute the most highly revolutionary fact in the history
of human civilization and progress. The man, therefore, who has a clear perception of those laws of mind and
of society under which modern economic forces have been set at work, cannot for a moment think that the end
and outcome of this modern business system is a new kind of human bondage, "the rich growing richer and
the poor growing poorer"; or that it can mean any such thing as the elevation of property at the expense of
manhood.
Even if it were a part of my subject to discuss the growth of vast individual fortunes as an incident of this
modern development of wealth, which it is not, there would be no time for more than a passing allusion. And
in making such an allusion, I might be content to call attention to my earlier dictum, that progress is not upon
direct lines, but tangential or zigzag. When the factory appears on the Piedmont slopes of the Appalachian
country, it may indeed make a fortune for the missionary of civilization who planted it there. But meanwhile it
has given the whole neighborhood its first chance to relate itself to the civilized world. I am content for the
present to leave that neighborhood in possession of its opportunities, serenely confident that it will in due time
work out its own completer destiny.
When the capitalist has retired from the scene of his exploitation, will the day arrive when the regenerated
neighborhood will own that factory, and others, too, for itself? Very likely. In any case, the neighborhood has
been emancipated from its worst disadvantages.
In short, I have little doubt but that the further progress of our civilization will give effect to certain economic
laws and tendencies, and to certain social rules and principles, that will make for a higher measure of equality
in the distribution of realized wealth. Meanwhile wherever a practical step can be taken to remedy an evil, let
us do what we can to promote that step. Let us recognize the already great possibilities for useful participation
in the social and public life that belong to an honorable business career.

Herein lies one great service that the university can perform (and our best colleges and universities are today
performing it with marked intelligence and ability), the service, namely, of providing very liberal courses for
young men who expect to go into business, in the general science of economics, in the history of modern
economic progress, in the development of the wage system, in the history and methods of organized labor, and
in very much else that helps to place the life of a practical man of business affairs upon a broad and liberal
basis. In the early days of our history it was the especial function of the college to train young men for the
ministry. In a somewhat later period it was notably true of institutions like Yale and Princeton that their
training seemed to fit many men for the law and for statecraft. We had, you see, passed from that theocratic
phase of colonial New England life to the political constructive period of our young republic.
But we have been passing on until we have emerged in a great and transcendent period of commercial
expansion and scientific discovery and application. It is a hopeful sign, therefore, that our universities are
finding out and admitting the demand that present-day conditions impose, and are training many men in the
pursuit of modern science, while they are training many others in the understanding of the application of
social and economic principles to modern life. All this they are doing and can well do without ignoring the
value of the older forms of scholarship and culture.
But I have a few remarks to make also upon the ethical relations of the business world of today toward the
political world; that is to say, toward organized government, whether in its sovereign or in its subordinate
forms. We cannot take too high a ground in proclaiming the value, for the present, at least, of the political
The business career in its public relations, by 13
organization of society. I should like to dwell upon this point, but I must merely state it. If the State: i.e., the
political form of social organization, is valuable, it stands to reason that it must be respected and maintained
at its best. It is also obvious that it will have a higher or a lower character and efficiency, according to the
attitude toward it taken by one or another of the dominant factors that make up the complex body politic.
Thus, for example, it is the feeling of men in control of the political organization in France today that the
Church, as a great factor in the social structure of the nation, is essentially hostile to the spirit and purposes of
a liberal republic. Hence a great disturbance of various relationships. I do not cite that instance to express even
the shade of an opinion. My point is that if the political organization of society is desirable and to be
maintained, it is a fortunate thing when one finds the dominant forces of society rendering loyal and faithful
support to the laws and institutions of government and recognizing without reserve the sovereignty of the
State. Yet in our own country there is a widespread feeling that many of the most potent forces and agencies

I will not dwell upon these things. It is enough to say that they are things the modern business man must have
upon his conscience. For, if such offenses come by way of the business world, their remedies must also come,
and indeed can only come, by that same path. In our municipal life, for example, it is the aroused interest and
zeal of the best business community for better government and better conditions that can alone produce
important results. Happily, all over the country we find chambers of commerce, boards of trade, merchants'
associations, and other bodies of men of practical business affairs, taking their stand for the transaction of
The business career in its public relations, by 14
public business upon high standards of character and efficiency. I have no doubt or fears as to what the result
will be. All of our large cities are themselves purely the creations of modern industrial, commercial, and
transportation conditions. And I hold that these very forces of industrial and commercial life that have created
the problems by bringing together great masses of people in crowded communities, must and can in turn solve
the problems by the application to municipal government of the scientific and intelligent principles which
belong to the best phases of business life.
All of this relates to my subject; but I must pass it by with a mere statement or two. It belongs to the
developed constructive imagination and to the trained ethical sense of the modern business man to perfect the
transit systems, to improve the housing conditions, to assure cheap sanitary water supplies, cheap
illumination, and, above all, due provision for universal education, parks, museums, and opportunities for
recreation, in short, all possible improvements of environment that can make life in our cities not merely
endurable but beneficial for the people. Here, then, is furnished a great field for the definite and conscious
aspirations of the successful man of business. Here lies a great many-sided work for social and moral as well
as physical and material progress which the business man, in the quality of good citizen and man of public
spirit, is fitted better than any one else to accomplish.
The intelligent young man who holds before himself ideals of usefulness that extend to such projects as these,
may be sure that the modern conditions of life will bring him great opportunities, and he may feel that he is
thus lifting his business career up to the plane of idealism that has, in the past, been reserved for a few
exclusive professions. Partly through his own endeavors, largely through association in commercial or other
organizations with his neighbors, he may help to accomplish for the benefit of all his fellow men of a great
community one step after another in the direction of public works that will meet the needs of a high
civilization.
Some of the most useful men, as well as the most unselfish and devoted, with whom I come in contact are

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